Arizona Gold & Silver (TSXV: AZS) has completed a non-brokered private placement that raised approximately $13 million, providing additional capital to advance exploration at the company's flagship Philadelphia gold-silver project in Arizona.

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If you’re unfamiliar, Arizona Gold & Silver is focused on exploring and developing precious metals projects in the southwestern United States. Its primary asset is the Philadelphia project near Oatman, Arizona, a historic mining district that has produced more than 2 million ounces of gold over its lifetime. 

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The project lies along the same mineralized trend as several past-producing mines and has been the focus of ongoing drilling campaigns to expand known mineralization.

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Management believes the Philadelphia project hosts a large epithermal gold-silver system with potential for both near-surface and deeper mineralized zones. Previous drilling has intersected broad zones of gold and silver mineralization, and the company has continued targeting extensions of those zones through additional exploration work.

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A positive development

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The latest financing further strengthens the company’s balance sheet without causing the company to slow exploration activity. 

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To be sure,  junior mining companies frequently face a difficult balancing act between preserving cash and continuing to drill. So this is certainly a positive development for Arizona Gold & Silver. 

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Of course, the financing itself does not change the underlying investment thesis. 

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Arizona Gold & Silver still needs to demonstrate that the Philadelphia project can support a larger resource base and eventually justify future development decisions. Exploration results will ultimately determine the project's value.

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Still, with fresh capital in hand and drilling expected to continue, the company now has additional runway to pursue that objective.

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